California voters will decide Proposition 3 on November 3, 2026, which would convert the existing income tax surcharge on high earners—originally enacted under Proposition 30 in 2012 and extended by Proposition 55 through 2030—into a permanent rate structure. The measure applies graduated surcharges starting above roughly $360,000 for single filers and directs the resulting $5 billion to $15 billion in annual revenue primarily to K-12 schools and community colleges. It qualified for the ballot in June 2026 after education unions gathered well over the required signatures. A September 2026 Public Policy Institute of California survey showed 58 percent support, consistent with prior voter approval of similar extensions. Traders appear to price the outcome around this polling lead and the measure’s established revenue role for education funding, with limited organized opposition noted to date.